SUNY campuses going tax-free to lure businesses

State universities, as well as some private colleges, will be tax free for businesses that locate there, Gov. Andrew Cuomo announced today.

The “Tax-Free NY” initiative will seek to lure start-up companies through tax-free incentives, such as no income tax for employees and no sales, property or business taxes, the governor announced at the SUNY Albany nanotech center as part of a tour of Albany, Syracuse and Buffalo.

The move comes as the state’s unemployment rate lags behind the national average and as Cuomo faces criticism for his efforts to revive the upstate economy. Cuomo said the economy is improving. The unemployment rate in April fell from 8.2 percent to 7.8 percent, its lowest level since March 2009.

“This ‘Tax-Free New York,’ changing what they believe, changing what they know, investing in New York in a big, big way. It will take us to a level that we deserve to be at and will make this state the Empire State once again,” Cuomo said.

The governor’s office didn’t put an estimate on how much the program would cost the state. It applies to all State University of New York campuses outside New York City and all private colleges north of Westchester County.

Cuomo said the program will make available 3 million square feet of commercial space at private colleges. Businesses who will be eligible include companies who plan to locate on the campuses.

Updated: The governor’s office said the state will forgo the revenue from the new businesses, but the state and local governments will benefit from the sales-tax revenue that employees spend in the community. Also, state colleges already do not pay property taxes.